Phoenix Mills gets €200 m from German fund...

Atul Ruia-promoted real estate developer Phoenix Mills has raised € 200 million (about Rs 1,300 crore) from German real estate fund MPC Synergy, in what is claimed to be the second biggest foreign direct investment in the Indian real estate market.

MPC Synergy, a joint venture between German’s MPC Capital AG and Geneva-based Synergy Asset Management SA, has picked up equity stakes ranging from 10 to 49 per cent in several projects promoted by Phoenix Mills and its two subsidiaries - Entertainment World Developers and Big Apple.

Phoenix holds about 42 per cent stake in Entertainment World Developers and 60 per cent in Big Apple.

Phoenix Mills, through its subsidiaries, is executing projects in cities such as Mumbai, Chennai, Pune, Bangalore, Indore, Raipur, Udaipur and Chandigarh.

Akme venture

MPC Synergy, which joins Deutsche Bank and Lehman Brothers to invest in India’s real estate market, has significant experience in doing business in India.

“MPC Synergy Real Estate can benefit from the country’s fast economic growth and provide access to investment opportunities in the highly promising Indian real estate market,” the fund says in its Web site.

Only in May this year, MPC Synergy formed a joint venture with the Anil Nanda group company, Akme Projects, to develop seven premium housing projects with an equity investment of about Rs 1,000 crore.

The 50:50 joint venture, Akme Rhine River Projects, will develop the seven projects in Ludhiana, Mohali, Greater Noida and two each in Bangalore and Gurgaon by 2012. Last year, MPC Synergy unveiled plans to invest about $1 billion in the Indian real estate market over a period of time.

Luxury malls, hotels

“Our group is developing about 100 million sq ft of land throughout India through independent and joint ventures, with 25 malls and eight luxury hotels under construction. We are committed to offering luxury brands a space to showcase themselves in a befitting environment, making Palladium (high-end luxury mall) the ideal destination,” Mr Atul Ruia, Managing Director of Phoenix Mills, told Business Line recently.

The real estate firm also plans to build budget hotels in tier II cities such as Bhopal, Indore and Bhilai.

In August last year, Phoenix Mills raised Rs 980 crore by way of qualified institutional placement and another Rs 320 crore through preferential allotment.

The investors include HSBC Financial Services, DB Fund Mauritius Ltd, Barclays Capital, Citigroup Global Markets Mauritius Pvt Ltd and Americorp Ventures Ltd.

On the BSE, Phoenix shares closed higher at Rs 184.80 (Rs 168.05)